India Losing the Outsourcing Crown

4/24/2013 1:36AM

A draft of the U.S.’s immigration bill could hobble Indian outsourcing firms' businesses in the U.S. The WSJ’s Abheek Bhattacharya talks about the competition from the Philippines and Mexico in the outsourcing sector.

This transcript has been automatically generated and may not be 100% accurate.

... the the ... the immigration bill that ... impacted ... me as outsourcing industry at a time when the I T sector is facing increasing competition ... I'm Deborah con judging me now is heard on the Street columnist ... Abheek bought it I had to see a beach ... at a center of this whole cancer thing thing really began in the nineties and it really works for India's economy right it really moved it forward it was that it was a great staple so what are we seeing now ... will write another and number of issues for the new ninety sectors of this immigration bill really comes in a bad time ... you've you've Avici seen ... economy slowdown in the last of the Queens West inclined to spend a lot of money in the nineties into thousands ... are really not spending that much money ... the other hand when did the sector faces in the net that you've seen the number of ... competitors come off from the Philippines from Mexico ... even so the big global IP giants like IBM are moving into this low cost efficient business ... solutions is going to squeeze the game for the likes of Infosys or were pro ... what what are we seeing the intent of the performance of these companies that isn't a mixed back or or or is it maybe they're not just the thing the Prophet say you could write that it is a mixed bag and you really seek so I mean ten years ago you really all saw them grow at double digits and now all ... know because there's so many things going on ... the men the sort of getting separated from the boys' ... of inflows says ... it is saying that its sales in the relatively weak ... Tata consulting on the other hand is extremely optimistic in you can see the difference in the share price is two ... and the sun have different businesses that way ... I'd talk was playing the whole of the range of ... IP services low wind and high and ... Infosys's specializing in a few things which is heating up some of its revenue ... selling what can the outsourcing industry really do next and given the fact leg as you mentioned is more competition ... from other place as labor costs satellite data they are going up so ... what what can it do really to transform the SEC during keep it moving ... it to really can do only one thing and actually have to move to the higher end of the game ... and you've seen companies like interest is due a dummy be Infosys's move is badly timed because it just comes in a ... terrible time OneWest inclined just on doing anything ... but it has to move to the higher end that's because the house to differentiate itself from what ... the Filipinos of Mexicans are offering also has to ... really make sure that it appeals to the West and clients in these plans now want ... more things they want consulting solutions they won broad ... you know it it did it one of these companies to tell them where they should be moving into not ... just doing simple database of server maintenance for them at a lot of competition I mean how much ... how much our come at countries like the Philippines ... encroaching on the industry and can you really ... get what you used in India are a lot cheaper in the Philippines now that she can the meantime the union ... well the Philippine the sector is still ... tiny compared to being in one reducing the number of surveys were ... Mendel as an outsourcing destination is gone up ... often when used to be a few years ago and the more more clients are joining to ... BP owes as business process outsourcing in the Philippines December's that needs a chaotic Stephen L a at time of change ... at Fifth estate thanks Fran much to be ... are out of Easter